Finance Tips For The New Year – How to Pay Off Debts
Tip #4: Pay Off Debts
If you do a quick internet search you’ll see that the most common way to pay off a mortgage faster is to make biweekly payments. You don’t have to pay anything extra with this approach. You pay half of your mortgage every two weeks. This will allow you to make 26 biweekly payments, which actually amounts to 13 payments a year instead of 12 when you only pay monthly. Also, if you feel like you can apply more to each payment, make sure the extra money is always applied to the principle payment and not just being applied to the interest.
Your car payment can reap the same benefits as your mortgage with the biweekly payments if allowed by your lender. Pay extra on the principle if you can. It’s also worth looking into automatic payments so you can avoid any type of late fee.
3. Student Loans
Most of us suffer from student loan debt. Pay extra on the principle and look into refinancing. Most student loans have high interest rates, so this could be an option that gives you some relief while still making a dent in the loans.
4. Credit Cards
Everyone has something different to say about how to pay off credit cards. You could tackle the smallest debt first, or you can focus on the card with the highest interest rate. Depending on your credit, you could look into a balance transfer to a credit card with a 0% APR promotion. Just make sure you keep an eye on when the promotion ends because the interest could back pay.
Don’t be afraid to seek professional help to assist with building a plan to help you get out of debt.
Check into Cash is here for you. You can pay all of your bills here in one place. It’s quick, easy, and convenient. You’ll know before you leave you have taken care of your bills. Staying on top of your payments will help you achieve your goals.